Question

PR 3-5A Adjusting entries and adjusted trial balances OBJ. 2, 3, 4 Dickens Company is a small editorial services company owned and operated by Monica Baker. On October 31, 2014, the end of the current year, Dickens Company's accounting clerk prepared the unadjusted trial balance shown below. Dickens Company Unadjusted Trial Balance October 31, 2014 Debit Credit Balances Balances 7,500 38,400 7,200 1,980 112,500 150,250 87,550 135,300 Cash Accounts Receivable.. Prepaid Insurance Supplies.. Land Building Accumulated Depreciation-Building. Equipment... Accumulated Depreciation Equipment. Accounts Payable Unearned Rent.. Monica Baker, Capital. Monica Baker, Drawing Fees Earned. Salaries and Wages Expense... Utilities Expense Advertising Expense... Repairs Expense.. Miscellaneous Expense 97,950 12,150 6,750 221,000 15,000 324,600 193,370 42,375 22,800 17,250 6,075 750,000 750,000 The data needed to determine year-end adjustments are as follows: a. Unexpired insurance at October 31, $5,400. b. Supplies on hand at October 31, $375. c. Depreciation of building for the year, $6,000. d. Depreciation of equipment for the year, $3,000. e. Rent unearned at October 31, $1,350. f. Accrued salaries and wages at October 31, $2,900. g. Fees earned but unbilled on October 31, $18,600.

Answer 1

Adjusting Entries:

	Account title and explanation	Debit	Credit
a	Insurance expense [7200-5400]	$1,800
	Prepaid insurance		$1,800
	[To record insurance expense]
b	Supplies expense [1980 - 375]	$1,605
	Supplies		$1,605
	[To record supplies expense]
c	Depreciation expense	$6,000
	Accumulated depreciation-building		$6,000
	[To record depreciation expense on building]
d	Depreciation expense	$3,000
	Accumulated depreciation-equipment		$3,000
	[To record depreciation expense on equipment]
e	Unearned rent [6750-1350]	$5,400
	Rent revenue		$5,400
	[To record rent earned from unearned rent]
f	Salaries and wages expense	$2,900
	Salaries and wages payable		$2,900
	[To record salaries and wages expense]
g	Accounts receivable	$18,600
	Fees earned		$18,600
	[To record accrued revenue]